I'm also building a house with Delta.

We are in the permitting process with Delta Build right now.  

The unit SF is one component of its size, but then we will sometimes add exclusive use common areas  as well as a pro-rated allocation of the common area.

Is that a Delta home?

Cash is always going to be king, but the delta is definitely more pronounced in higher interest rate environments.

Points and the Delta on the spread.. in those days I was borrowing on my LOC's for about 7 to 8% apr.. and lending at 20% apr..

If you are not planning to live in the property, then you are not going to qualify for an FHA loan.

As for the areas to target, my goal in getting our feet wet as real estate investors--and since we plan to be living in Sac--is to find a property we can live in while renting out one or more units to help cover our housing expenses, which we can then hold and continue to rent out when we move.

THEN, I plan to purchase the second home using a FHA or conventional loan (3%-5% down), for which I will likely pay the monthly cost out-of-pocket, maybe with some rental income support if it is a duplex.My concern is, I do not want to spend my savings or weigh down my debt-to-income ratio so much so that I cannot qualify for and pay the down payment and closing for the lending on the second home.Questions: - With the first home being multi-family, 75% of the rental income (or potential rental income initially) will relatively either maintain or boost my debt-to-income ratio from lenders' perspectives, right? 

I do recommend you consider Sacramento Delta Property Management as your management team.